Release Date: August 6, 2001

WASHINGTON, DC - With President Bush's National Energy Policy citing the potential of new technologies to boost America's oil and gas production while protecting the environment, Secretary of Energy Spencer Abraham today commissioned a review of ongoing federal oil and gas research programs.

The review will include three public hearings - in Denver (Aug. 8), Pittsburgh (Aug. 13), and Houston (Aug. 14) ? at which invited panels of industry experts, elected officials, and others will present their views on future directions for government oil and gas research and development.

"The President's energy policy makes it clear that new technology will be key to finding and producing more oil and gas both in the United States and globally," Secretary Abraham said. "The review I am directing will help us define the technology investments the U.S. Government should be making with industry to keep oil and gas flowing from America's wells, improve prospects for U.S. technology abroad, and safeguard our environment."

Abraham said that results from the review, to be completed in September, will help shape the Administration's fiscal 2003 budget due to be submitted to Congress early next year. The review will help the department in its efforts identify new sources of energy production, aggressive conservation measures, and new technologies that will enable America's producers to find and extract more oil and gas without endangering the environment. Such advancements will be necessary to support the President's balanced energy policy.

The current review will also build on the findings of the department's report, Environmental Benefits of Advanced Oil and Gas Exploration and Production Technology, which profiles modern-day improvements that have dramatically reduced the "footprint" of drilling operations, minimized waste produced in oil and gas operations, and protected resident and migratory wildlife. The report was produced in October 1999 by the Department of Energy during the Clinton Administration.

The review will cover the complete spectrum of the Energy Department's current oil and gas technology programs, from innovations in exploration and production to advanced technologies for pipelines. It will also deal with how best to implement two recommendations from the President's National Energy Policy that deal specifically with new oil and gas technologies:

• ...that the President direct the Secretaries of Energy and the Interior to promote enhanced oil and gas recovery from existing wells through new technologies; and

• ...that the President direct the Secretary of Energy to improve oil and gas exploration technology through continued partnership with public and private entities.

In carrying out the review, the Energy Department will also compile data gathered in several recent analyses of federal oil and gas technology activities, including information prepared for an ongoing review by the National Academy of Sciences.

The public hearings will be held on:

• August 8: Denver, Colorado - Doubletree Hotel, 3203 Quebec Street, from 1:00 pm to 5:00 pm;

• August 13: Pittsburgh, Pennsylvania - Hyatt Regency (at the Pittsburgh International Airport) from 1:00 pm to 5:00 pm

• August 14 Houston, Texas - Sheraton North Houston Hotel (near Intercontinental Airport), 15700 John F. Kennedy Blvd, from 1:00 pm to 6:00 pm

Those not on the formal panels can submit written statements of up to four single-spaced pages through August 30. Statements can be sent by e-mail to OilGasReview@hq.doe.gov or by mail to the Office of Natural Gas and Petroleum Technology, FE-30, U.S. Department of Energy, Washington, DC 20585, Attn: Strategic Review. The statements should address the following questions:

1. What should the Federal Government's objectives be in promoting advanced oil and natural gas technologies?

2. Have government/industry technology partnerships proven valuable in the past and how can they be improved in the future?

3. Is Federal financial support needed in all sectors of the oil and gas industry - exploration, production, distribution, processing, regulatory compliance, etc.? Are there sectors or technologies in which Federal support is especially important?

4. Given that small independent businesses account for 50 and 65 percent, respectively, of oil and gas production in the lower 48 states, is the current federal program properly focused on this sector's critical technology needs? If not, what should be the focus?

5. Are there research areas not being properly addressed in the current program? If so, what changes should be made?

6. What actions should the U.S. Government undertake to promote the global competitiveness of U.S.-developed, advanced oil and gas technologies?